SYDNEY (BLOOMBERG) - Australia Prime Minister Scott Morrison said the government is working on allowing some international students to return to the country, offering the multi-billion-dollar higher education industry a lifeline.

Foreign students are a key source of income for Australian universities, and the border closures due to the coronavirus pandemic risk crippling some institutions.

After a meeting of the National Cabinet on Friday (June 12), Mr Morrison said the authorities are still working out issues such as quarantine measures for students entering the country. There is "still a lot of work to do", he said, adding there may be pilot programmes next month.

The higher education sector generated A$15.9 billion (S$15 billion) in international student tuition fees in 2018-19, according to research firm IBISWorld. China accounted for 27 per cent of international students in Australia as of March this year.

Mr Morrison urged state and territory governments in Australia to ease their own border restrictions to allow unfettered domestic travel and allow the local tourist industry to recover.

He also announced further easing of social distancing measures, saying that as many as 10,000 people would be allowed to gather at sports stadiums and cultural venues with a maximum capacity of 40,000 as long as they are seated.